Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $306,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $306,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 41P
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Required information
[The following information applies to the questions displayed below.]
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In
2022, her net Schedule C income was $306,000. This was her only source of income. This
year, Rita is considering setting up a retirement plan.
What is the maximum amount Rita may contribute to the self-employed plan in each of the
following situations?
Note: Round your intermediate calculations and final answers to the nearest whole
dollar amount.
a. She sets up a SEP IRA.
Answer is complete but not entirely correct.
$ 58,916 X
Maximum contribution](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff822e662-0723-4d4f-a6f0-07e2a301d540%2F8072b679-f4a8-40ad-9c4c-dd4b657d4dcf%2F354sbtf_processed.png&w=3840&q=75)
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Required information
[The following information applies to the questions displayed below.]
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In
2022, her net Schedule C income was $306,000. This was her only source of income. This
year, Rita is considering setting up a retirement plan.
What is the maximum amount Rita may contribute to the self-employed plan in each of the
following situations?
Note: Round your intermediate calculations and final answers to the nearest whole
dollar amount.
a. She sets up a SEP IRA.
Answer is complete but not entirely correct.
$ 58,916 X
Maximum contribution
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